These Auto Stocks Are In Focus After Ford Smashed Wall Street’s Estimates
Auto stocks have been rising once again in the stock market recently. That shouldn’t come as a surprise at a time when the automotive industry is seeing major shifts. Electric vehicles (EV) are gaining mainstream adoption. And many companies are working to take advantage of this transition and are starting to see the fruits of their labor.
For instance, Ford (NYSE: F) is speeding ahead under CEO Jim Farley with a key focus on electrification. Ford stock is surging after the company reported quarterly results on Wednesday that far exceeded Wall Street’s estimates. The automaker also increased its annual guidance for the second time this year. What’s more, Ford also said it would reinstate its regular dividend starting in the fourth quarter. If you have been following Ford’s progress, you would agree that it is in a much stronger position than where it was roughly a year ago.
Now, it’s evident that one of the oldest automakers in the U.S. has no intention of missing on the electrification bandwagon. With the world increasingly recognizing the dire need to switch to green energy, many investors are allocating a significant portion of their portfolio on EV stocks. Given the increasing focus on electric vehicles, here is a list of best auto stocks to watch in the stock market today.
Best Auto Stocks To Watch Right Now
- Tesla Inc. (NASDAQ: TSLA)
- Lucid Group Inc. (NASDAQ: LCID)
- XPeng Inc. (NYSE: XPEV)
- Fisker Inc. (NYSE: FSR)
Tesla
Tesla stocks have been on a tear recently. The largest EV maker’s stock broke past the $1,000 mark and has risen even more this week. The bullish momentum started when Hertz (OTCMKTS: HTZZ) ordered 100,000 vehicles from Tesla, as well as after upbeat commentary from Wedbush analyst Daniel Ives. The analyst believes there will be more bulk orders for Tesla vehicles, like the one Hertz made. Just yesterday, Uber (NYSE: UBER) announced a partnership with Hertz to offer 50,000 Tesla vehicles for rent to its drivers.
Ives also believes these bulk orders could be a step in the direction of Tesla eventually launching a robotaxi network. Going forward, investors could continue to focus on Tesla’s investments to expand its manufacturing capacity to take advantage of rising demand for its vehicles. Considering Tesla’s recent developments, would you include TSLA stock on your watchlist?
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Lucid
Lucid is coming out as one potentially strong competitor to Tesla, as it gets closer to shipping its first vehicles this weekend. The company isn’t simply delivering its first Air Dream Edition EV this weekend. According to Lucid, it is also holding a rally for the new owners “on a route that showcases the vehicle’s standout ride, handling, and performance capabilities”. With its strong team and underlying technology, it’s not surprising why many investors choose to hold on to their beliefs in LCID stock.
While a lot of the attention is on luxury electric vehicles itself, that’s only the tip of the iceberg. Here’s why. If you have paid attention during the investor presentation, you would also know that Lucid doesn’t just want to make electric vehicles. Instead, it also aims to leverage its market-leading battery technology to sell energy storage systems. Or simply supply some of the components to other futuristic industries such as flying cars. With the EV space constantly dominated by Tesla, will the Lucid Air give Elon Musk a run for his money?
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XPeng
XPeng has been gaining altitude this week after the Chinese EV’s affiliate announced plans to roll out flying vehicles that could also drive on roads. In case you missed it, HT Aero, a company with XPeng’s backing, showcased a flying car at XPeng’s annual Tech Day event on Sunday. The company plans to release its flying car by 2024. Furthermore, it says that the car will have a lightweight design and a rotor that folds away. That will allow the car to drive on roads and then fly once the rotors expand. During the event, XPeng also unveiled its latest version of the advanced driver-assistance system called Xpilot 4.0.
While flying cars may get all the attention these days, investors need to note that it is the electric vehicles that determine the fate of the company for now. Admittedly, many are afraid to initiate a position in Chinese stocks. This is after the government crackdown on various companies with cybersecurity and antitrust concerns. But let’s not make generalizations here. Looking at XPeng’s latest vehicle delivery update, the company posted 10,412 deliveries in September. That marks the company’s highest-ever monthly delivery figure. In the first nine months of the year, XPeng delivered a total of 56,404 vehicles. That represents a whopping year-over-year increase of 300%. Considering the strong fundamentals, will you consider investing in XPEV stock right now?
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Fisker
Fisker develops a tech-driven asset-light automotive business model for the automotive industry. Many consumers and investors alike are excited about its first Fisker Ocean models that will begin production in 2022. Earlier this month, the company announced the establishment of The Fisker Magic Works. This is the company’s UK-based specialty vehicle engineering and development division. The aim is to instill futuristic design, technology, and innovation into high-profile products supporting its mainstream business. Moreover, the company also confirmed earlier this year that London will be the location for the company’s first UK brand experience center.
What we know for now is, the company’s Fisker Ocean is on target for production to begin in November 2022. Deliveries to the UK would commence in 2023. It is also noteworthy that Fisker hired industry veteran David King as senior vice president of engineering to lead this new UK-based operation. With his experience of more than 30 years in vehicle engineering and product development, he would be a huge addition to Fisker. However, investors must bear in mind that such production targets may be affected by factors such as chip shortage and other supply chain problems that might arise. With FSR stock, investors have to wait for at least another year until the delivery of the first vehicle. If you ask me, I’d be cheering from the sidelines.
